Endeavor conducted a 12-month research project funded by Grupo Financiero Banorte. The findings summarized in this report are based on interviews with over 200 technology entrepreneurs in the Mexico City Metropolitan Area, as well as secondary data on over 632 tech companies and their founders. Data was also gathered on more than 44 investment firms and local entrepreneurship support organizations.
The lessons drawn from these technology companies are consistent with Endeavor’s experience supporting more than 2,016 entrepreneurs leading 1,258 fast-growing companies in a wide range of global industries, network mapping entrepreneur communities in a number of +50 cities around the world, and operating one of the most active venture capital funds outside of Silicon Valley.
This report share findings on the size and productivity of the entrepreneurship community, motivations of local entrepreneurs, network analysis of the sector, key challenges that impact opportunities for growth, and recommendations for future expansion.
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Mexico City has a community of more than 632 entrepreneurial technology companies. In the last 5 years, the number of entrepreneurial tech companies tripled in Mexico City, rising from 164 to over 632. These tech companies employ over 29,000 people. The majority of new companies were in e-commerce, fintech, IT services, and SaaS companies.
The majority of new companies were in e-commerce, fintech, IT services, and SaaS companies. It appears that there is a lot of enthusiasm around tech entrepreneurship in Mexico City, but over the past five years, tech companies have been starting up at a higher rate than they were able to scale. In some cases, this can be explained by the fact that at the time, Mexico City was specialized in a number of sub-industries that are now globally less influential.
Total investment activity ballooned in 2019. Over the past ten years, more than 700 venture capital rounds (including Venture Capital, Seed and Series A, B, C, & D) worth over USD$1.6 billion were raised by Mexico City tech startups, a 70x increase from 2010. 65 of which closed in 2019 and represent 55% of the total capital raised.
Employment growth was significant between 2014 and 2019, most of which was driven by a small group of companies that scaled. Entrepreneurial tech companies employed a total of over 29,000 people on a full-time, permanent basis in 2019, twice as many as they did in 2014. Companies that reached the size of 50 or more employees represented less than 15 percent of tech companies but contributed over 76 percent of jobs in the sector.
Is a leading financial institution in Mexico, the second largest financial group in the country and the one with the broadest business diversification in the market. GFNorte provides services to more than 21 million customers through an extensive network that includes more than 1,160 branches, over 8,600 ATMs, more than 13,700 correspondents and over 164,000 point of sale terminals.
Our subsidiaries’ main activity is the realization of financial operations such as providing banking, brokerage and warehousing services, leasing and factoring operations. We offer insurance and annuity services, as well as the management of retirement savings contributions. We also operate the international money transfer companies Motran and Uniteller, which mainly serve the remittance market.
Established in 1997, leads a global High-Impact Entrepreneurship movement and promotes economic growth and job creation by selecting, mentoring, and accelerating the world’s best High-Impact Entrepreneurs. To date, Endeavor has evaluated more than 50,000 entrepreneurs and selected more than 1,698 individuals who lead more than 1059 high-growth companies. With the support of a global network of Endeavor mentors, these High-Impact Entrepreneurs have created more than 1,500,000 jobs, generated more than ten billion dollars in revenue during 2017, and inspired future generations to innovate and take risks. Headquartered in New York City, Endeavor operates in 35+ growth markets around the world.
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